Klein/Johnson Group has been hired by various Crypto-related firms in the United States to represent their interests to both the lawmakers and regulators. The Washington-based lobby group will be getting its payment in USD and XRP. There are fears that the current confusion in the world’s largest economy about Cryptocurrencies is driving more Crypto firms to countries that have well-established regulations.
Klein/Johnson Group To Be Paid In XRP And USD
Various Cryptocurrency firms in the United States have come together to form the Securing America’s Internet of Value Coalition. The group will help in pushing for the agenda of the concerned parties in the country. The body has approached Klein/Johnson Group to represent their interests to the relevant government authorities.
According to Bloomberg, Ripple and other Cryptocurrency firms in the country have approached the Washington-based lobbying firm. The group will be paid in both fiat and Cryptocurrency. It has been confirmed that the lobby group will be paid US$25,000 in fiat and another 10,000 XRP per month.
The Group To Target Lawmakers and Regulators
Given the slow pace at which Cryptocurrency regulation is progressing in America, Klein/Johnson will help Securing America’s Internet of Value Coalition in pushing the relevant government authorities to establish the relevant laws. Specifically, the group will target the Internal Revenue Service (IRS), the Securities and Exchange Commission (SEC), and the U.S. Congress. Other groups whose mandate has an impact on the Crypto sector in the country will also be approached.
Various Crypto firms in America are facing tough times with the country’s regulators. For instance, there has been a long-standing issue on how SEC recognizes some Cryptocurrencies. Ripple has been against the agency’s move to treat its coin as a security thereby placing it under the market regulator. Whereas SEC has come out clear about Bitcoin and Ethereum, Ripple has not been successful in getting the same treatment.
Since then, Ripple has been pushing to get treated in the same way. A few months, Brad Garlinghouse, the CEO of Ripple claimed that XRP coin should not be treated as a security. The CEO noted that XRP and Ripple are different. He added that their ownership of the altcoin does not give them its control.
Lack Of Regulation Certainty Hurting Crypto Sector
Despite various countries making major progress in Cryptocurrency regulation, most Crypto firms in America are of the opinion that the country is lagging behind. Many Crypto firms have moved to countries such as South Korea and Japan as they have clear regulations in place. To address this challenge, 15 Democratic and Republican members of Congress challenged SEC to offer clarity on initial coin offerings and Cryptocurrencies.
The 15 legislators wrote to Jay Clayton, the SEC Chair to complain about the uncertainty in the country’s Crypto sector. Specifically, they mentioned the lack of regulations on how altcoins are offered and sold. The lack of clear laws is slowing the pace of innovation in the country. Cryptocurrency firms have been in a state of confusion as consumers and prospective investors are wary of making any major move. This is hurting the growth of the sector in the country.